High incomes and low rents mean potential buyers can save for a home deposit quicker if they live here

IF you live in this capital city you have the ability to save quicker for a home deposit than any other in Australia.

News Corp Australia NetworkMarch 22, 201611:46am

Potential home buyers can save quicker for a deposit in Perth.Source:Supplied

HIGH incomes and low rents mean potential home buyers living in Perth have the ability to save for a home deposit quicker than anywhere else in Australia.

New analysis by comparison website mozo.com.au has also revealed Hobart is the least saveable capital city in Australia.

It had the cheapest average rent in Australia, but also had a low household income - about $30,000 below the national average.

The comparison site looked at a range of common household expenses and found that on average, Perth residents would have around $40,000 more in potential savings than residents of Hobart.

Mozo director Kirsty Lamont said Sydney residents may be surprised that their saving potential was only just ahead of Hobart.

The comparison took into account common expenses such as groceries, utility bills, health and vehicle insurance.

Ms Lamont said it was the big ticket items of average income and rent which had the biggest affect on determining saveability.

“When it comes to household expenses, Canberra has the dubious honour of being the most expensive city for groceries, water rates, and vehicle costs, as well as above-average rent. However, these expenses were easily offset by the high average household income, making Canberra the second best city for saving.”

Brisbane was a “reasonable’’ city for saving money, placing fourth with an average household income above Melbourne, Adelaide and Hobart, and rent below the national average.

“Unfortunately, Hobart and Adelaide residents may have to tighten their belts a little more if they want to get a foot in the property market,’’ Ms Lamont said.